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Maryland Gambling Tax

Calendar August 1, 2012 | Posted by Dan

Greed can be more blinding than sunlight sometimes.  The unchecked want of money can often lead the most intelligent of people to make awful mistakes, even if they want that money for a good cause.  Maryland legalized gambling in 2008 because they wanted to provide more funds for state education.  Indeed a majority of the tax revenue from Maryland gambling goes toward improving public education.  Unfortunately, the Maryland gambling industry is not nearly as successful as people hoped it would be in 2008.  The main problem with the industry is that the tax rate on slot machines is just too high.  We are dealing with a state that has not legalized table games, so the only significant profits to be made are off of slot machines.  The state is currently taking a massive 67 percent chunk out of all slot machine profits.

Not quite sure how to rationalize why this seemed like a good idea to the Maryland lawmakers.  It is as if legislators sometimes forget that casinos are a business and not just this endless supply of free money.  In order for a business of that scale to success a lot of money must constantly be reinvested to keep the business competitive.  That is the main reason why the gaming tax is so incredibly low in Nevada, by far the number one gambling market in the country.  The state wants the casinos to be top of the line so they continue to be on the cutting edge of the industry.

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